work comp / unemployment

Discussion in 'Trucker Taxes and Truck Financing' started by markk, Jul 10, 2015.

  1. markk

    markk Medium Load Member

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    A guy wants me to drive for him as an independant driver . His truck. I have to pay work comp and unemployment . I know about how much income tax I would have to pay but not the other stuff.
    About how much , jusat a ball park figure , would I have to pay for work comp if I made 40K hauling cement in a pnumatic ?
    Am I correct in thinking that unemployment payment is a matching amount of state and federal taxes withheld ?

    Not making enough jack working where I am at as far as I am concerned anyway . Grain seems to be a very low paying job. I am going to open another thread on that subject . ( how do these grain haulers with new sweet trucks and trailers pay for them ? ) But this guy wants to give me .40 a mile all miles . So maybe 550 a day = 1100 pay a week but then take out all taxes and ins . so I need to figure out what I would make . I am thinking that I would be netting about 5 to 600 after all that . In which case I am really in no better financial shape than now plus I would be losing the regional 5 state driving experience I am getting now that I was really wanting so i could move up to an anderson flatbed job. Hmmm... decisions decisions
     
    Last edited: Jul 10, 2015
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  3. Alaska76

    Alaska76 Road Train Member

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    Workers comp insurance is regulated by your state of residence, only they will have the correct answer.
     
  4. glockwise

    glockwise Light Load Member

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    It sounds exactly like you would be an under paid employee. I think most of the bulk drivers by me make in the $60 range. Your $40 is gonna look a lot like $28k

    Just so I know that you really know:

    Self employment tax is 12.6% plus 2.9%
    Futa is 6% max $7000
    Suta varies by state.
    Comp varies by state and by worker class and driver is among the worst.

    FUTA, SUTA and comp are paid by the employer. In most states if you are a sole proprietor you can not have comp coverage on yourself.
     
  5. Pur48Ted

    Pur48Ted Road Train Member

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    First, and most important: it is ILLEGAL for him to require you to pay for your own Workers Comp and unemployment.
    If that is his best offer, RUN as fast as you can AWAY from that skin-flint.
     
  6. Oldman49

    Oldman49 Medium Load Member

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    He may WANT you to be an independent contractor but if you are driving his truck,taking directions from him, you are an employee,,,move on,,he is looking for away to stiff you.
     
    rachi Thanks this.
  7. markk

    markk Medium Load Member

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    thanks guys . I was wondering about that ID thing since even though I could refuse a load he said he would not work with me if I did that sort of thing which I would not do any way . but seems to me that he would be telling me things like how to load stuff and deal with customers . i am sure he would not just say " hey clean out your trailer or not before changing loads . it's your business " I am quite certain that he would require it be done properly so that is him regulating how I do my job and that makes me an employee.
    I would take it . I decided not to , but seems the pay after taxes is not going to make me any more than I make now . If it was going to make me more money I would not care , but . . Would be a better easier job but I really want this 5 state experience i am getting now for my next move up the ladder.
    I was not aware that I could not have WC on myself even though I was driving his truck .
     
  8. markk

    markk Medium Load Member

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    I found this just now . Seems unemployment and wc is off the table . So my wages would be better but I run the risk of being unemployed for what ever reason and no unemployment to draw on . I have not talked to the guy today but plan to . Knowing nothing about hauling cement I do not know what happens in winter or bad weather . Is there work ? Not sure if he hauls anythning else or not in these times . If the risk of unemployment is low then maybe .

    https://www.kdor.org/misclass/mcfaq.htm
    If a worker is classified as an independent contractor, the employer generally does not have those obligations and the worker is required to:
    make quarterly estimated payments for income taxes, and;
    • pay self employment taxes.
    An independent contractor is not entitled to unemployment compensation and, in many cases, will not receive workers compensation if injured on the job.

    Most importantly, the intentional misclassification of workers is illegal and constitutes tax and insurance evasion. Employers engaging in this practice may be subject to significant penalties and fines.
     
    Last edited: Jul 11, 2015
  9. markk

    markk Medium Load Member

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    So let me see if I got this right as I am not much on business . If I make 1000 a week as an employee I know I pay about 250 in taxes from looking at my pay stub from last job .
    If I make 1000 a week as independent then does this mean that i take total of 15.5% of the 1000 and pay in 155 dollars ?
    this would be 10% less than being an employee which would help but then the risk of unemployment adds in and injuries that would be on my personal insurance . Then can I really make 1000 week working for this guy .
     
  10. markk

    markk Medium Load Member

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    been averaging so far about 110 dollars a day at current job . that is far below what I think regional 5 days out should pay and less than I can make going home every night hauling dirt and rock around town , but then I do not really know what the average grain hauler makes around here .
    grain prices are supposed to go up in August but I do not really know what that mounts to since I am new at grain .
    This pnuematic job Is mostly cement I think . Running from Wichita to Dodge city and out that way in a few other towns . Not sure how long it takes for loading /unloading . Can I really get in 550 miles a day ? . does not seem like that could happen since Dodge is only about 150 miles and and other places out that way are not too far off from there since only operate in kansas. Would have to be load unload quickly to have enogh time to do it .
    Is 40 cents a mile even a good deal ?
     
    Last edited: Jul 11, 2015
  11. markk

    markk Medium Load Member

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    might add in that he offered 500 bonus first year and 1000 second and 1 week first 2 weeks second paid vacation at 100 a day .
     
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